Every year in the United States, franchisors enlist the aid of thousands of entrepreneurs as franchisees. But all too often, many entrepreneurs shy away from the great opportunities offered by franchising because they lack prior business experience.
Buying a franchise with no experience is still something that many entrepreneurs do! The great thing about franchising is that it offers a path forward for entrepreneurs who dream of becoming their own boss but lack any prior business management experience.
Want to learn more? Find out how you can buy a franchise with no experience below!
Can You Buy a Franchise with No Experience?
Buying a franchise with no experience is something that many entrepreneurs do as a way to jumpstart their new careers.
Franchisors offer extensive training and support programs for their franchisees, regardless of their prior business experience. These programs instruct franchise owners on the day-to-day management and operations of their franchise unit and also help familiarize them with the company’s products and services. This puts them all on a level playing field even if they don’t have any previous business or management experience and makes the dream of business ownership much more accessible.
How to Buy a Franchise with No Experience
Interested in getting started as a franchise owner, even if you don’t have any previous business experience? Find out the steps to buy a franchise here!
Do a Self-Evaluation and Research Potential Franchises
First, do a self assessment.
What are you looking for in a franchise? What industries are you interested in? How much financing and franchisor support will you need?
After asking yourself these questions and others, start researching franchises thoroughly and narrow down your options to a small handful that align with your goals and personal values.
Apply and Meet with a Franchisor
Next, apply to your chosen franchisors and start the interview process. Along the way, you’ll likely be invited to a franchise discovery day to learn more about the company in detail, meet with key personnel, and be able to ask any outstanding questions about the franchisor.
Review the Franchise Disclosure Document (FDD) and Sign the Franchise Agreement
Once you feel comfortable moving forward with becoming a franchise owner, carefully review and sign the franchise agreement.
Obtain Financing and Start Looking for Locations
Next, you’ll need to obtain financing for your franchise and begin looking for suitable locations for your franchise unit.
Fortunately, many options exist for this. Most franchisors provide some form of financing for their franchisees, while other options include traditional bank and credit union loans, SBA loans, angel investors, crowdsourcing, and even using the funds in your qualified retirement accounts, such as IRAs and 401(k)s.
In most cases, franchisors will assist their franchisees with site selection and construction. However, it’s always a good idea that you do your homework and scout out several potential sites yourself.
Attend the Franchisor’s Training Sessions
You’re almost done!
The next step is to attend the franchisor’s training sessions. If you’re buying a franchise with no experience, this is especially important. Here, you’ll learn all about the day-to-day operations of managing your franchise unit in detail as well as more about the company’s products and services.
Open Your Business
Finally, have a grand opening for your franchise. Most franchisors provide assistance with this to ensure that your new franchise opens successfully.
Congrats! You’re now a franchise owner.
Follow Your Dreams as an Entrepreneur Today!
Don’t let your lack of business experience hold you back from following your dreams of becoming an entrepreneur. Franchising has worked for decades because it offers a path forward for entrepreneurs without any previous business management experience, opening the door of business ownership for them.
Buying a franchise with no experience is something that countless entrepreneurs do every year. See what exciting franchise opportunities await you as you follow your dream of becoming your own boss!